trust

2009 Edelman Trust Barometer

 trust
About the Edelman Trust Barometer
The 2009 Edelman Trust Barometer is the firm’s 10th study of trust and
credibility. A 30-minute telephone survey was conducted among 4,475 people
in 20 countries on five continents between November 5 and December 14,
2008, following the presidential election in the United States. For the first time,
the survey sampled two different age groups concurrently in every country (1,075
people ages 25 to 34 and 3,400 people ages 35 to 64) and added Australia and
Indonesia to the list of countries surveyed.
The informed publics interviewed in the 2009 survey:
• are college-educated;

• report a household income in the top quartile of their country (per age group);
• report significant media consumption and engagement in business news
and public policy.
Margin of Error For the 35-to-64 age group, margin of error is ±1.7% globally;
±4.9% for the U.S. sample; ±5.7% for the China sample; and ±8.0% for
other countries in the study. For the 25-to-34 age group, margin of error is
±3.0% globally; ± 9.8% for the U.S. sample; ±11.3% for the China sample;
and ±13.9% for other countries in the study.
Disclosure At the time the 2009 Trust Barometer was compiled, Edelman had a
client relationship with the following companies or brands mentioned in this
brochure: Wal-Mart, Starbucks, and Johnson & Johnson.
For more information on the Edelman Trust Barometer and to view past
results, please visit www.edelman.com/trust.
The 2009 Edelman Trust Barometer was conducted by Edelman’s research
firm, StrategyOne.

About Edelman
Edelman is the world’s largest independent public relations firm, with 3,200
employees in 53 offices worldwide. Edelman was named “Large Agency of
the Year” in 2008 by PRWeek and a top-10 firm in the Advertising Age “2007
Agency A-List,” the first and only PR firm to receive this recognition. CEO
Richard Edelman was honored as “2007 Agency Executive of the Year” by both
Advertising Age and PRWeek. PRWeek also named Edelman “Large Agency
of the Year” in 2006 and awarded the firm its “Editor’s Choice” distinction. For
more information, visit http://www.edelman.com.

On the cover, from top left: A farmer from Yunnan province cries over her baby, one
of thousands sickened by milk products that manufacturers in China adulterated with
melamine; the Royal Bank of Scotland, which was bailed out by the British government
after a near-collapse in late 2008; a house in foreclosure, a symbol of the subprime mort-
gage crisis in the United States that sparked the country’s recession; an electronic sign
captures the sharp decline in the value of NASDAQ stock on Tuesday, Jan. 22, 2008,
when the Dow Jones industrials dropped more than 150 points; Richard S. Fuld Jr.,
former CEO of Lehman Brothers, the American brokerage house that filed for
bankruptcy in September 2008; demonstrators in Reykjavik, Iceland, which suffered a
complete financial meltdown in 2008.

2 2009 EDELMAN TRUST BAROMETER

Thousands of demonstrators crowd a square in Reykjavik, Iceland, in December 2008 to protest the country’s economic collapse and demand
the resignation of leaders thought to be responsible. The global credit crunch of 2008 brought down the country’s three main banks, devalued
the country’s currency, and forced Iceland to seek billions of dollars in aid from international sources.

Business’s Fall From Grace: Where to From Here? 2

The State of Trust: A Global Divide 4

Who Can We Trust? 12

A Call for Government Intervention 15

The Business Case for Trust 18

Public Engagement: The Road to Rebuilding Trust 20

TABLE OF CONTENTS 1
 Business’s Fall From Grace: Where to From Here?
We have never had a more dramatic backdrop against which to relay the findings of the annual
Edelman Trust Barometer than we have for our 10th edition, conducted in 20 countries on five
continents just after the presidential election in the United States.

Business has had a disastrous year, less (figure 1). While our survey did Japan, Korea, Mexico, and Indonesia.
well beyond the evident destruction not ask why they had lost trust in In the developing countries among
in shareholder value and the need companies, a series of catastrophic this group, living standards are still
for emergency government funding. events that included the fall of the Big much higher than ever before and, in
Whereas the problems of corporate Three automakers and the national- Asia and Latin America, government
trust were limited largely to New ization of the Royal Bank of Scotland has always played a more activist role
Economy enterprises like Enron provide ample explanation. in the economy. It appears that the
and Global Crossing in 2001-2003, world is moving toward a consensus
companies at the center of the global The most profound fall from grace on a modified free market approach in
economy are in serious trouble for business has been in the United which government is more involved in
in 2008-2009. And in a further blow States, where trust had been grow- the private sector.
to corporate authority, confidence in ing after the 2002 Enron scandal. In
CEOs as a reliable source of infor- the home of capitalism, American Being a public company means
mation about their companies has trust in business to do what is right is something different now than it did
hit a new low globally. now most comparable to that of the when Milton Friedman claimed in
countries of “old Europe” where trust 1970 that the social responsibility
When asked whether they trusted levels have always been lower. Trust of business is to increase its profits.
corporations more or less than a in business, generally credited with Some four decades later, we’ve
year ago, more than one-half of our improved standards of living, still holds moved from a shareholder to a stake-
respondents said they trusted them up in the BRIC countries as well as in holder world in which business must

Figure 1: Companies less trusted now than a year ago

Thinking about everything you have read, seen, or heard about business in the last year, in general, do you trust corporations
a lot less, a little less, the same, a little more, or a lot more than you did at the same time last year?

% who trust companies less

100

90

80 83%
79% 77%
70 74% 73%
69% 67% 67% 67%
60 66%
62% 62% 61%
50 56% 55% 54%
50% 49% 49%
40

30
32%
20
21%
10
0
al d n S. ali
a y rea K. e ain da ly s ina en d o ia ia ia azi
l
ob lan pa U. an U. nc na Ita nd ed lan xic ss Ind es Br
Gl Ire Ja str rm Ko Fra Sp Ca rla Ch Sw Po Me Ru on
Au Ge S. eth
e
Ind
N
Informed publics ages 25 to 64 in 20 countries

2 2009 EDELMAN TRUST BAROMETER

recast its role to act in the public’s cause-related marketing and corporate
interest as well as for private gain. social responsibility; Shared Sacrifice
in the face of the global recession
The global support for more govern- through equitable compensation; and
ment regulation evidenced in this Continuous Conversation with stake-
“Business must make
year’s Barometer is not a call for
business to abdicate its responsibility
holders, characterized by agility,
timeliness, and contribution—not
fundamental changes
to tackle the big issues of our control—of message. if it is to regain the
time. A majority of respondents said
that business must partner with The rebuilding of trust will not happen license to operate.”
governments and advocacy groups overnight; it will go hand-in-hand with a
to solve the world’s pressing problems, recovery in the economy and a rise in
among them the financial crisis, share prices. Historically, we’ve seen
global warming, energy costs, and that trust is key to restoring investor
affordable health care. Business confidence (figure 2). Rebuilding trust
must make fundamental changes if it requires business to think and
is to regain the license to operate. communicate differently, to partner
with government and NGOs, to be
We believe in the potential of Public transparent by speaking publicly
Engagement, which combines reas- about goals, and then to document
sessment of corporate policy and successes or failures. It is time for
continuous communication. There are business to suit up, take the field, and
four elements in Public Engagement: go on offense for the second half of the
Public Sector Diplomacy, in which game. I’m optimistic that business has
business works in cooperation with the ability to regain its mandate to lead.
NGOs and government to address
major global issues; Mutual Social Richard Edelman
Responsibility, a combination of President and CEO, Edelman

Figure 2: Trust is key in rebuilding investor confidence

How much do you trust business to do what is right?

70 1800

1600
60
Trust in U.S. business in general 1400
Enron, the dot-com bust,
50 and September 11 1200

1000
40
800

30 600
S&P 500: Sep 2001 – Dec 2008
400
20
200

10 0
Sep 01
Dec 01
Mar 02
Jun 02
Sep 02
Dec 02
Mar 03
Jun 03
Sep 03
Dec 03
Mar 04
Jun 04
Sep 04
Dec 04
Mar 05
Jun 05
Sep 05
Dec 05
Mar 06
Jun 06
Sep 06
Dec 06
Mar 07
Jun 07
Sep 07
Dec 07
Mar 08
Jun 08
Sep 08
Dec 08

Informed publics ages 35 to 64 in the U.S.; Responses 6-9 only on 1-9 scale; 9 = highest

BUSINESS’S FALL FROM GRACE: WHERE TO FROM HERE? 3

 The State of Trust: A Global Divide
A country’s economic position and its prospects for growth emerge more strongly than ever
as factors in this year’s Trust Barometer. Although not a stark dividing line, informed publics in
emerging economies and developed markets reveal telling differences in their levels of trust in
institutions, industries, and a company’s headquartered country.

Trust in business is States trusting business today, levels Over the past seven years of Baro-
are the lowest they have been in the meter research, trust in business
country-specific Barometer’s tracking history—even among Europeans has been gauged
Around the world, informed publics lower than in the wake of Enron and as relatively stable, with overall trust
are less trusting of corporations to the dot-com bust (figure 4, page 5). scores in the 30%-to-40% range.
do what is right than they were a (Trust in government has been much
year ago. But when asked about For U.S. businesses, this down- more volatile, shifting up or down
their trust in business in general, turn marks a stark reversal from with political and economic changes.)
respondents in individual countries the steady uptick in trust of the last With these traditionally low levels of
reveal a wider spectrum of trust five years and a new parity with trust in business, Europe did not have
(figure 3). Western Europe, which historically far to fall this year and, for the most
shows the lowest trust levels in part, trust remained steady and low;
In the United States, home to some business among all nations surveyed. trust in business dropped in Italy,
of the largest corporate collapses, Perhaps more important, this portends Spain, and Ireland. The social model
trust in business collapsed as well, a movement away from the laissez- economies of the Netherlands and
dropping 20 percentage points over faire era where capitalism was Sweden are the exceptions to the rule,
the course of one year. With only king and “the business of business as both recorded a slight increase of
38% of informed publics in the United was business.” trust in business (figure 5, page 5).

Figure 3: Trust in business is country-specific

How much do you trust business to do what is right?
% who trust business to do what is right
100
Trust down Trust steady Trust up New
90
additions
80 75% 74% in 2009
69% 71%
70 68%
65% 65%
61% 63% 62% 61%
60 58%
55% 54%
51% 49% 49% 49% 51%
50 47% 45% 45% 45% 45% 47% 45%
41% 41% 43% 45% 42%
38% 40% 39% 39%
40 35% 33%
30% 29%
30 27%

20

10
0
al S. ly
xic
o ain ia
lan
d da an
y
nc
e K. lan
d
pa
n rea ia ds azi
l en ina ali
a ia
ob U. Ita Sp Ind na U. Ko ss an Br ed Ch str es
Gl Me Ire Ca rm Fra Po Ja
S. Ru erl Sw on
Ge th Au Ind
Ne
Informed publics ages 35 to 64; Global total: 18 countries (excludes Australia and Indonesia) 2008 2009
Responses 6-9 only on 1-9 scale; 9 = highest

4 2009 EDELMAN TRUST BAROMETER

 West-East Shift
Figure 4: In U.S., trust in business at lowest level, including post-Enron; A QUESTION FOR...

Now on par with U.K./France/Germany

Nick Burns, former U.S. under-
How much do you trust business to do what is right? secretary of state, professor at
Harvard University’s Kennedy
60
School of Government, and a
58% counselor to Edelman
United States 53% 20-point
55
drop Q: How will the higher levels of
Enron, the dot-com bust, 51% business and government trust in
and September 11 49%
50 48% 48% emerging economies affect the
negotiations at forums like the G-20
44% 44% global financial talks, the Doha
45
round of trade talks, and the UN
41% 40% climate summit in Copenhagen?
40 38%
38%
32%
35% 36%
36% 36% A: We are in the midst of a major
34% strategic shift in world politics and
35
U.K./France/Germany economics—the rise to power of
China, India, Brazil, and others.
30
Business and government leaders
2001 2002 2003 2004 2005 2006 2007 2008 2009
in the United States and other
Informed publics ages 35 to 64 in the U.S. and U.K./France/Germany Western nations will need to build
Responses 6-9 only on 1-9 scale; 9 = highest trusting relationships with their
counterparts from these rising
countries to achieve effective
results. China and India, in par-
ticular, will be lead players at the
G-20 financial talks, at Doha,
and at the climate summit.

Figure 5: In Europe, trust in business relatively low except in

Netherlands and Sweden
How much do you trust business to do what is right?

100
Moderate economies: Powerhouse economies: Social model Central/Eastern
90 trust declines trust steady but low governments: Europe
80 trust rises economies: With traditionally
+7 trust steady,
70
-9 -6
+12 relatively low low levels of trust
60
62%
50 -14 55%
51%
in business, Europe
49% 47% 45% 45% 45% 47% 45%
40

30
41% 40% 41%
35% 33%
39%
42% did not have far
30% 29%
20 27%
to fall this year.
10
0
ly ain d an
y
nc
e K. nd
s en d ia
Ita Sp lan U. ed lan ss
Ire rm Fra rla Sw Po Ru
Ge eth
e
N
Informed publics ages 35 to 64 2008 2009
Responses 6-9 only on 1-9 scale; 9 = highest

THE STATE OF TRUST: A GLOBAL DIVIDE 5

 A Crisis in Confidence
A QUESTION FOR...
Antonio Martins de la Cruz,
foreign affairs minister of
Portugal from 2002 to 2004,
and a counselor to Edelman
Q: What should leading European
nations do to rebuild trust?
A: The perception of the
current crisis in the EU stems
from a lack of confidence in the
financial system, exacerbated
by the feeling that government
is not providing adequate
answers to the problem. Only
with transparent policies will it
be possible for government to
regain the confidence of the
European public. Transparency,
solidarity between government
and business, and the ability of
government to anticipate similar
problems are essential to
stabilize the situation.
The Trust Divide
Trust in business <50%
among 25-to-64-year-olds
Trust in business >50%
among 25-to-64-year-olds
6 2009 EDELMAN TRUST BAROMETER
In emerging economies, trust in
business remains high
The West’s skepticism about busi-
ness stands in contrast to Asia Pacific
and Latin America, where trust in
business remains strong. In emerging
economies, even where trust fell, it
remained much higher than levels
recorded throughout much of the
rest of the world (figure 6, page 7).
Significantly, in China, the trust-in-
business score rose from 54% last
year to 71% this year, and in Brazil
it rose from 61% to 69%. Overall
trust levels were high in Japan, India,
and Indonesia, a country new to this
year’s Barometer.
The incongruity may well be attributed
to the fact that people in emerging
economies traditionally credit business
with having introduced an improved
standard of living—thus the higher
levels of trust.
A closer look at the data, however,
indicates that this advantage may be
short-lived. Our survey shows that
79% of Japanese, 56% of Chinese,
and 49% of Indian informed publics
say they now have growing concerns
about business. In the wake of the
Satyam scandal—which broke after
we conducted the survey—this fore-
casted decline in trust may well have
been realized.
Globally, younger and older
informed publics now trust
business equally
Last year’s edition of the Trust Baro-
meter marked the first time that
the survey studied young informed
publics (ages 25 to 34). The results
showed that many younger people,
historically cynical about business,
tended to trust it more than their
older counterparts (ages 35 to 64) in
many regions of the globe.
This year, the younger cohort’s more
trusting attitude has just about
vanished, and their trust in business
mirrors that of the older group.
Although disparities exist in the Figure 6: In emerging economies, trust in business remains high
growing economies of Russia (70%
of 25-to-34-year-olds trust business How much do you trust business to do what is right?
vs. 45% of 35-to-64-year-olds),
Mexico (78% vs. 65%), and India 100
(78% vs. 65%), for the most part, High and heading higher Falling but still high Debuts high
90
younger and older respondents now
80
trust business equally.
70 75% 74%
71% 69%
Large drops in trust in business 60 65% 65% 68%
61%
among the younger group occurred 50 54%
in France (52% to 32%), the United 51% 49%
40
States (60% to 32%), and South
30
Korea (52% to 32%), reflecting the
20
overall lower levels of trust in busi-
ness in these established economies. 10 2008
N/A
0
Global China Brazil Mexico India Indonesia
Lower trust in business is not
government’s gain Informed publics ages 35 to 64 2008 2009
Responses 6-9 only on 1-9 scale; 9 = highest
Conventional wisdom holds that when
trust in one institution falls, another
will experience the benefit of an
increase in trust. This year’s findings
disproved that notion. Overall, trust
in government did not rise to offset a
loss for business (figure 7).

Figure 7: Trust in government did not rise to offset lower trust in business
How much do you trust government to do what is right?

100
Trust down Trust steady Trust up New
90
additions
79% 80%
80
74% in 2009
70
63% 64%
60
51% 51% 52% 53%
50 49% 49%
43%44% 43% 45%45% 43%
39% 39% 41% 40% 38% 41% 39%
40 37% 38%
34% 35%35% 35%36% 34% 35% 33%
30% 32%
30 29% 27%
22%
20
11%
10
0
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Ind ain rea lan
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ly ssi
a
U.K an
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s da lan
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a
Glo
ed
Me Sp Ko Ire Jap Fra Ch Ru rm rla Ca
na Po Bra ne str
Sw S. Ge e o Au
Neth Ind

Informed publics ages 35 to 64 in 20 countries; Global total: 18 countries (excludes Australia and Indonesia) 2008 2009
Responses 6-9 only on 1-9 scale; 9 = highest

THE STATE OF TRUST: A GLOBAL DIVIDE 7

 Business is still more trusted than
government in 13 of the 20 markets
we surveyed. Respondents trust
government more than business only
in Germany, Canada, Italy, France,
the Netherlands, Australia, and
China. Given the pervasive role
the Chinese government plays in
the country’s everyday life, it’s not
surprising that 80% of respondents
trust government to do what is right.
Trust in government remained steady
or declined in 12 of the 20 countries
surveyed, with the largest drops in
Sweden (63% to 39%) and the United
States (39% to 30%). Trust in govern-
ment rose in eight countries, with the
largest gains in the emerging econo-
mies of Poland (11% to 33%) and Brazil
(22% to 51%). Gauged for the first
time this year, trust in government in
Indonesia and Australia is at mid-point
levels of 52% and 53%, respectively.
NGOs remain highly trusted in
every region, except Asia Pacific
Of the four institutions tracked by the
Trust Barometer, NGOs command the
most trust. In every region except Asia
Pacific, they are trusted more than
business, government, and media
(figure 8). Around the world, NGOs
are the only institution trusted by
more than 50% of informed publics.
Although NGOs earned fourth place
among trusted institutions in the Asia
Pacific markets, it’s important to note
that growth in the non-governmental
sector has been strong and steady
over the past few years in this region.
For example, trust in NGOs among
Barometer respondents in China was
31% in 2004 and 36% in 2005 and
jumped to 60% in 2006, flattening
out to 53% by 2009. The increasing
affluence of these markets has
brought about increased aware-
ness of the kinds of issues that
NGOs take on—the environment,
8 2009 EDELMAN TRUST BAROMETER
health care, human rights—leading
to increased levels of trust among
informed publics that these organi-
zations will do what is right.
Swedish, German, and Canadian
companies retain top trusted spot
In an economy where the majority
of corporations are now multi-
nationals, an important question
emerges: Which country’s companies
command the most trust?
The most trusted companies are
headquartered in Sweden, Germany,
and Canada (figure 9, page 9).
These three countries have held the
“most trusted spot” for the past three
years of Trust Barometer surveys.
As they have in previous years,
American companies continue to
suffer from a trust discount in Western
Europe. The United States is the only
Western nation whose identity causes
such an effect on its brands. Ameri-
can companies rank 25 to 30 points
Figure 8: NGOs most trusted institution in every region except Asia Pacific
How much do you trust each institution to do what is right?
100
90
80
70
60
50 54%
50% 47%
45% 45%
40
39%
30
20
10
0
Global Total North America
Informed publics ages 35 to 64 in 20 countries
Responses 6-9 only on 1-9 scale; 9 = highest
lower in Europe than they do in the
United States, and they badly trail
German, Swedish, and Canadian
companies in being trusted. Only
in China do American companies
remain in the highest rank, more
highly regarded by the Chinese (at
a 75% level of trust) than they are
by Americans themselves (62% of
whom trust U.S.-based companies).
Interestingly, while Barometer resp-
ondents in China assert the highest
trust in business in the world,
Chinese businesses are among the
least-trusted companies globally.
Companies headquartered in Russia
share an equally low share of trust
around the world (24%).
With this data in hand, the implica-
tions of the cross-national sale of
a brand such as Volvo—which has
roots in Sweden, is now owned
by America’s Ford, and is being
shopped to a buyer in China—now
seem much greater than what once
met the eye.
68% 67%
61% 61%
58% 57% 56%
52%
46%
42% 40% 40%
32% 32%
Latin America Europe Asia Pacific
NGOs Business Media Government
Figure 9: Companies headquartered in Sweden, Germany, and Canada
remain most trusted; companies in China and Russia trusted the least
How much do you trust global companies headquartered in the following
countries to do what is right?

100

90
80 76%
73% 74% 72% 74% 71% 71%
70 68% 68%
65%
62% 60% 60%
60 59%
53% 52% 54% 50% 53%
50
43%
40 36%
32%
30 28%
24% 26% 24%
20
Swedish Finance Minister Anders Borg is
10 battling a severe economic downturn and
0 protectionist measures that could threaten
en an
y da K. ds nc
e
lan
d S. ain ly
lan
d ina ia
ed na U. an U. Sp Ita Ch ss a European-wide economic recovery.
Sw rm Ca erl Fra Ire Po Ru
Ge th Known for consensus-building, Borg drew
Ne
attention for saying that it’s “very important
Informed publics ages 35 to 64 in 18 countries
2008 2009 to point out that we are trying to solve a
Responses 6-9 only on 1-9 scale; 9 = highest
crisis and that [means] doing what is right,
not being nice to banks.” Notwithstanding
the country’s fiscal woes, trust in business
to do what is right rose in Sweden by 12
Figure 10: Technology remains most trusted industry sector globally points—and for the third straight year,
companies based in Sweden top the list
How much do you trust businesses in each of the following industries to do of most trusted businesses.
what is right?

76%
Technology 77%
66%
Biotech/life sciences 65%
57%
Health care industry 61%
57%
Automotive 62%
55%
CPG manufacturers
55%
55%
Energy 57%
55%
Retail
59%
55%
Food
2008 N/A
53%
Pharmaceuticals
56%
50%
Entertainment
53%
Banks 45%
56%
Media companies 42%
46%
Insurance 40%
45%

Informed publics ages 35 to 64 in 18 countries 2008 2009

Responses 6-9 only on 1-9 scale; 9 = highest

THE STATE OF TRUST: A GLOBAL DIVIDE 9

 Obama and Business
A QUESTION FOR...
Bob Shrum, senior fellow at
New York University’s Wagner
School of Public Service,
prominent consultant to the
U.S. Democratic Party, and
a counselor to Edelman
Q: Does the Obama
administration have the
tools to forge a recovery?
A: President Obama is ready
to listen and move beyond the
politics of one-sided solutions,
and business has to be open
too. Business can help make the
inevitable increase in financial
regulation more effective and
efficient. It can help make
progress on trade agreements
by not rejecting reasonable
worker and environmental stan-
dards. And clean technologies
can create whole new markets
for energy companies.
Trust in nearly every industry banking and automotive—suffered the
falls; technology remains greatest declines. Trust in banks was
nearly cut in half—falling from 69%
most trusted to 36%—while the automotive industry
experienced a 27-point plunge
Just as levels of trust in business dif-
fer among countries, a global divide (figure 11).
between developed and emerging
economies also appears to hold for Viewed together, the U.K., France, and
informed publics’ trust in industries. Germany demonstrated a similar
drop in major industries, with banks
Around the world, technology remains (41% to 27%), energy (44% to 39%),
the single most trusted industry and media companies (35% to 28%)
all taking a hit (figure 12, page 11).
sector, with 76% of respondents
telling us that they trust this sector
to do what is right, followed by Yet in several emerging economies,
biotechnology and life sciences. The the industries that are suffering in the
least trusted industries are media West, such as banking and automo-
and insurance companies; just 40% tive, remain trusted or have made gains
of respondents trust insurance over the past year (figure 13, page 11).
companies—a five-point decline from Trust in banks rose by 7 points in
the year before (figure 10, page 9). Brazil; trust in media companies rose
by 10 points in India. In China, trust
In the United States, virtually no in banks, automotive, energy, and
major industry was spared the media all increased in the last year,
erosion of informed publics’ trust. again demonstrating how different
Not surprisingly, the two industries this growing economic powerhouse
seeking government bailouts— is from the major Western markets.

Figure 11: In U.S., trust in every industry declines

How much do you trust businesses in each of the following industries to do what
is right?

100
90
In the United States, 80 -33
80%
-27 73% 73%
69%
virtually no major 70
60% 58%
64% 62% 63%
60
54% 54% 54%
industry was spared 50
44%
49% 50%
42%
49%
40% 42%
40
the erosion of informed 30
36%
33% 31% 33%
25%
publics’ trust. 20

10
0
s e s e t try l y a es s y
nk tiv nie nc en us tai erg arm nc rer log
Ba mo pa ura inm nd Re En Ph cie ctu no
Au
to
co
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ta
are
i
if es nu
fa
Tec
h
dia En hc h/l ma
Me alt tec G
He Bio CP

Informed publics ages 35 to 64 in the United States 2008 2009

Responses 6-9 only on 1-9 scale; 9 = highest

10 2009 EDELMAN TRUST BAROMETER

Figure 12: In the U.K., France, and Germany, trust in automotive, energy, From Excess to Prudence
banks, and media companies declines
A QUESTION FOR...
How much do you trust businesses in each of the following industries to do
what is right? David K.P. Li, chairman and
chief executive, Bank of East Asia,
100 and a counselor to Edelman
90

80 Q: Trust in business and

government is slightly down in
70
Asia Pacific, but both are faring
60 better than their U.S. and
50 Western Europe counterparts.
52%
40 49% How should business and
44% 41% government work together in
30 39%
35% these turbulent economic times?
20 27% 28%
10 A: The current economic crisis
has given rise to doubts about the
0
future of Western models of free
Automotive Energy Banks Media companies
enterprise. The model, however,
is strong; the crisis reaffirms that
Informed publics ages 35 to 64 in the U.K., France, Germany 2008 2009 no economy, not even the world’s
Responses 6-9 only on 1-9 scale; 9 = highest
largest, can continue to live
beyond its means. Firms based
in Asia have significant global
opportunities as forward-looking
governments continue to encour-
age the development of free
markets and prudent risk-taking.

Figure 13: In emerging economies, industries that suffer in the West remain trusted
How much do you trust businesses in each of the following industries to do what is right?

China India Brazil

100 100 100

90 90 90

80 84% 80 80
83% 83% 81%
80% 79% 81%
70 70 70
72% 72% 72% 72% 71%
60 67% 60 65% 60
59%
50 55% 50 55% 50
52%
40 40 40

30 30 30

20 20 20

10 10 10
0 0 0
e y s s ve y ks ies s
oti
v erg an
k nie oti erg an an nk
m En B pa m En B p Ba
Auto com A uto co
m
dia dia
Me Me

Informed publics ages 35 to 64 2008 2009

Responses 6-9 only on 1-9 scale; 9 = highest

THE STATE OF TRUST: A GLOBAL DIVIDE 11

 Who Can We Trust?
Mirroring the erosion of trust in business this year, trust in every type of source of information about
companies and of every type of spokesperson is down in most markets around the world.
These lower levels of credibility suggest that business must engage with its audiences
through multiple voices on multiple channels, especially since informed publics say they need
to hear information several times before they will believe it.

Credibility of traditional than most traditional sources like considered nearly equally credible by
articles in newspapers (30%) and all age groups surveyed, and for
sources of information wanes
news coverage on the radio (29%). the most part are on par with more
The credibility of all information traditional sources like newspapers,
sources has declined strongly in Around the world, conversations with TV, and radio, signaling the growing
most markets among 35-to-64- company employees and conver- influence of word-of-mouth as a
year-olds in our 18-country tracking sations with friends and peers are source of information about companies.
audience (figure 14). Even the
credibility of business magazines
and stock or industry analyst Figure 14: Credibility of sources of information about a company declines
reports—traditionally the most
trusted sources—has dropped, How credible is each of the following as a source of information about a company?
from 57% to 44% and from 56% to
47%, respectively. 47%
Stock or industry analyst reports
56%
44%
There is particular erosion in trust Articles in business magazines
57%
in television and radio as credible Conversations with your 40%
sources of news about companies. friends and peers 49%
Conversations with 40%
The credibility of television news company employees 2008 N/A
coverage declined from 49% to 36%, 38%
News coverage on the radio 49%
and the credibility of newspaper
Television news coverage 36%
articles fell from 47% to 34%. 49%
Internet search engines such as 35%
Google News or Yahoo! News 2008 N/A
In several countries, some notable
34%
shifts have occurred. In China, tele- Articles in newspapers
47%
vision news coverage, which last Free content sources such as 27%
Wikipedia or Web portals 38%
year was the most credible source
Live communication such as 27%
at 70% (by respondents ages 25 to a CEO speech 2008 N/A
64), is now considered credible by Corporate communications such as 26%
press releases, reports and e-mails 38%
just 47% of the same group and is 24%
A company’s own Web site
slightly less credible than conversa- 31%
tions with friends and peers (49%). Business blogs 19%
2008 N/A
Personal or non-business 16%
In the United States, where analyst blogs or bulletin boards 2008 N/A
reports and articles in business Social networking sites such as 15%
MySpace or Facebook 20%
magazines earn the highest, and 13%
Corporate or product advertising
equal, levels of credibility (46%) 20%

among respondents ages 25 to

64, conversations with company Informed publics ages 35 to 64 in 18 countries 2008 2009
employees (40%) are more credible “Extremely credible” and “very credible” responses only

12 2009 EDELMAN TRUST BAROMETER

Experts are most credible Figure 15: Trust in nearly every spokesperson down; academics, industry
spokespeople for a company; experts most credible
CEO credibility hits new low If you heard information about a company from each of these people, how credible
would it be?
The credibility of nearly every
spokesperson is down around the
world. Specialists remain the most 100
credible purveyors of information 90
about a company, with 59% of 80
respondents ages 35 to 64 saying
70
an academic or an expert on a com-
pany’s industry or issues would be 60
59% 57% 58%
extremely or very credible (figure 15). 50 56%
40 47% 47% 49%
Peers remain a credible source of 38% 39%
30 36%
information about a company. “A 30% 29% 32%
person like yourself” is as credible 20 27%
as an industry analyst, with 47% of 10

respondents saying they find the 0

information they receive from a peer An academic Financial or A person Non-profit Regular CEO of Government
or expert on industry like you organization employee company official or
to be extremely or very credible, and
that company’s analyst or NGO of a regulator
30% saying they find the information industry or issues* representative company
from a regular company employee to
be extremely or very credible. Only *Asked as “an academic” in 2008 2008 2009
27% consider information from a Informed publics ages 35 to 64 in 18 countries
government official or regulator as “Extremely credible” and “very credible” responses only

extremely or very credible.

Since 2003, the Edelman Trust Baro-

meter has tracked the credibility
of CEOs as spokespeople for a Figure 16: CEO credibility hits new low in several countries
company, adding new markets If you received information about a company from a CEO, how credible would it be?
each year. This year, in 18 of the
20 markets surveyed, only 29% of
70 U.S. U.K./ France/Germany
respondents ages 35 to 64 view
information from a CEO as credible. Canada Mexico
60
Italy Spain
In the United States, which has Ireland Poland
50
seen a revolving door of high profile Brazil South Korea
CEOs, the credibility of information
40
from a company’s top leader sits
at a six-year low, at 17%, among
30
35-to-64-year-olds. New lows also
were reached in Italy, South Korea, 20
and the U.K./France/Germany, among
others, as well as in the emerging 10
economies of Mexico and Brazil,
where business is overall more highly 0
trusted (figure 16). 2003 2004 2005 2006 2007 2008 2009

Informed publics ages 35 to 64 in 18 countries

“Extremely credible” and “very credible” responses only

WHO CAN WE TRUST? 13

 The relatively low levels of trust
in CEOs as spokespeople should
not be interpreted as an excuse
for top business leaders to go silent,
as they did in 2003-2005 in the
wake of the Enron, Worldcom, and
Parmalat scandals. CEO commu-
nications should be supported by
other channels, especially employees,
who are trusted ambassadors for
company information.
Trust in digital channels also
falls, but influence is still felt
Trust in digital media sources for news
about companies followed the down-
ward trend for all media, with free
content sources (such as Wikipedia
and Web portals) and social
networking sites (such as MySpace
and Facebook) losing ground,
dropping globally among 35-to-64-
year-olds from 38% to 27%, and
20% to 15%, respectively.
For the first time, this year’s Barom-
eter asked respondents about their
trust in Internet search engines (such
as Google News and Yahoo! News),
business blogs, personal or non-
business blogs, or bulletin boards
as sources of company information.
Among 35-to-64-year-olds, search
engines emerged as most trusted
of all digital channels (35%), with
markedly lower levels of trust for
business (19%) and non-business
(16%) blogs.
One notable exception is South
Korea, where 25-to-64-year-olds
view social networking sites (45%)
and personal or non-business blogs
or bulletin boards (46%) as credible
sources of information about a
company, attesting to that country’s
long-standing embrace of social media.
All corporate channels lose
trust, but employees are
considered reliable sources
of information
With business less trusted this year
than last, it’s not surprising that trust
in the company-generated commu-
nication channels that business uses
to reach stakeholders also declined.
Trust in corporate communications
like press releases, reports, and
e-mails fell to 26% from 38%; a
company’s own Web site to 24%
from 31%; and corporate or product
advertising to 13% from 20% among
informed publics ages 35 to 64 in
18 countries.
The Barometer added new questions
this year about the trustworthiness of
information about a company from con-
versations that respondents have with
a company’s employees, and from
live company communication like a
speech by or interview with senior
management. Around the world, con-
versations with employees were the
most trusted of all corporate sources
monitored, at 40%, while live com-
munications earned a 27% trust level.
These findings suggest that compa-
nies must employ a mix of channels
to help them earn the trust of
stakeholders and ensure that
messages are communicated to—
and embraced by—employees, who
can serve as trusted conduits of
company information.

Multiple Information Sources Enhance Credibility 10 or

Don’t know/
refused Once
more times 7% 6%
Think about everything you see or hear every day about companies, 5%
6 to 9 times Twice
whether it is positive or negative. How many times in general do 6% 16%
you need to hear something about a specific company to believe
that the information is likely to be true?

When asked to volunteer a number, 60% of informed publics ages 3 to 5 times

25 to 64 in 20 countries say they need to hear information about 60%
a company three to five times to believe that the information is
credible. This finding suggests that limiting a corporate message or 4 or 5 times
announcement to a single channel or spokesperson will leave doubt 25%
in the audience’s mind as to the information’s veracity. Distributing
3 times
the information on multiple channels will improve its chances for 35%
believability and acceptance.
Informed publics ages 25 to 64 in 20 countries

14 2009 EDELMAN TRUST BAROMETER

A Call for Government Intervention
The mandate from the respondents to this year’s Trust Barometer is clear: the old order, in
which business had the freedom to operate autonomously and without government restraint,
is over. But the new appetite for stricter government regulation of markets does not provide
business with an “out.” Informed publics expect business to partner with other institutions to
address fiscal and social ills and find solutions to them.

A lack of trust triggers desire Among our global sample of 25-to-

for more government regulation
and control
In many parts of the world, the
credit crisis and the economic
downturn of late 2008 brought
calls for government regulation of
troubled industries—and sparked
new debate about the extent to
which governments should intervene
in business. Overwhelmingly, Trust
Barometer respondents want gov-
ernment to intercede.
64-year-old informed publics in 20
countries, respondents by a 3-to-1
margin say that government should
intervene to regulate industry or
nationalize companies to restore
public trust (figure 17). This sentiment
was backed strongly in Western
Europe, led by France (84%), and in
North America, with 70% support
for this statement in Canada and
61% in the United States.

In November 2008, the CEOs of the Big Figure 17: By a 3:1 margin, informed publics agree government should
Three automakers—Richard Wagoner impose stricter regulations and greater control over business in all industries
of General Motors, Robert Nardelli of
Chrysler, and Alan Mulally of Ford—testify How strongly do you agree or disagree that your government should in the future impose
at a hearing on the automotive industry stricter regulations and greater control over business across all industry sectors?
bailout conducted by the Financial
Services Committee of the U.S. House
of Representatives. The federal
Agree
government approved $17.4 billion in 65%
loans ($13.4 for GM and $4 billion for
Chrysler); Ford said it did not need
government aid to survive and thrive.

Disagree
22%

Neither agree
nor disagree
Don’t know 12%
1%
Informed publics ages 25 to 64 in 20 countries

A CALL FOR GOVERNMENT INTERVENTION 15

 Health and Business
A QUESTION FOR...
Julie Gerberding, M.D.,
director of the Centers for
Disease Control and Prevention
from 2002 until 2009, and
a counselor to Edelman
Q: How can business
contribute to better health
and more affordable care?
A: The fundamental question
is not how we get affordable
care, but more health for the
money we’re investing. It’ll
take a deliberate partnership on
the part of people, businesses,
and government. “Health and
safety” should be the way
all companies do business.
Baseline benefits should include
tele-working, health screening
and education. Mandating
tobacco-free workplaces is the
single most important thing
businesses can do.
Figure 18: Government and business share responsibility for causing global issues
How responsible are each of the following entities for contributing to these global issues?
Financial Credit Crisis
81%
Government
and regulators
Global Warming
77%
Government
and regulators
Informed publics ages 25 to 64 in 20 countries
Responses 6-9 only on 1-9 scale; 9 = highest
16 2009 EDELMAN TRUST BAROMETER
In the major Western European
economies of the U.K., France, and
Germany, three-quarters of respon-
dents agree that government should
step in to prevent future financial
crises (73%, 75%, and 74%, respec-
tively), using whatever means it sees
appropriate, including lending money
or guaranteeing deposits. This belief
was echoed in the BRIC countries
as well, with Brazil (68%), Russia
(79%), India (78%), and China (73%)
all showing strong support for gov-
ernment intervention in the activity of
banks and the financial industry.
In the United States, where govern-
ment has stepped in to bail out the
financial and automobile industries,
just under one-half (49%) of respon-
dents agree that the free market
should be allowed to function
independently. This is the first year
that the Barometer asked this question,
Energy Costs
84%
Businesses
Access to Affordable Health Care
81%
Businesses
and the response is remarkable in a
country that in recent decades has
given business free reign to lead.
Four pressing global issues
examined as a yardstick
for trust
For the first time, the Edelman Trust
Barometer asked respondents to
answer a series of questions about
four pressing societal issues—the
financial credit crisis, energy costs,
global warming, and access to
affordable health care. The goal was
to determine informed publics’
attitudes about who they believe
is responsible for causing these
problems—and who must solve them.
As figure 18 shows, respondents
believe that government and busi-
ness share responsibility for causing
these global issues.
80% 79%
Government Businesses
and regulators
80% 63%
Government Businesses
and regulators
Government, not NGOs, held Figure 19: Government held most responsible for solving global issues
most responsible for solving Which one entity do you think should be most responsible for solving each of
these issues these global issues?

Non-governmental organizations are 100

the most trusted institution in 12 of 20
90
countries we surveyed. Yet, despite
80
the high levels of trust they receive,
NGOs are not held most responsible 70
70%
for finding solutions to issues like 60
the financial credit crisis, energy 50 53%
costs, global warming, and access 47%
40
to affordable health care. That 41%
responsibility falls to government: 30

respondents globally believe govern- 20 24%

21%
ment is most responsible for solving 17%
10
4% 6%
problems like the credit crisis, global 2% 9% 3%
0
warming, and energy costs (figure 19). Energy Costs Financial Credit Crisis Global Warming Affordable Health Care

Business has lost ability Informed publics ages 25 to 64 Government and regulators Business NGOs
in 20 countries
to lead unilaterally; must
partner with others to solve
global issues Figure 20: Business has lost ability to lead unilaterally; must partner with
Business, however, should step up others to solve global issues
to partner with government on Thinking about the role that business should play in helping to solve global
these global challenges, respondents issues such as energy costs, the financial credit crisis, global warming, or
say. When asked what role business access to affordable health care, which of the following statements is closest to
should play to help solve issues your view? 1) Business has to partner with governments and advocacy groups
such as energy costs, the financial to solve these global issues; it cannot do it alone; 2) Business should focus
credit crisis, global warming, and on what they themselves can do on these global issues, whether or not govern-
access to affordable health care, ments or others partner with them; 3) Business should not play a part in helping
two-thirds of 25-to-64-year-olds to solve these global issues
surveyed around the world believe
that businesses should partner 100
with governments and other third 90
parties to address global issues 80 83%
(figure 20). The partnership model is
70
especially welcomed in Latin America, 69%
where 83% of respondents say 60 66% 65% 65%
business should team up with third 50 57%
parties to take on pressing prob- 40
lems. Virtually no one believes that 39%
30 33%
business has no role in addressing 31% 30% 29%
20
these challenges.
10 15%
3% 2% 4% 2% 2%
1%
0

Global North America EU Asia-Pacific Latin America BRIC

Informed publics ages 25 to 64 Partner with governments Do what it Play no role

in 20 countries and third parties can alone

A CALL FOR GOVERNMENT INTERVENTION 17

 Workers in China discard milk adulterated with melamine, which sickened more than 300,000 children and caused eight deaths in countries
around the world in 2008. Government inspectors discovered that 21 Chinese companies were producing milk, infant formula, and other
products tainted by the industrial chemical. At least 11 countries stopped all imports of mainland Chinese dairy products and the scandal
led to the arrest, firing, or resignation of several government officials and company leaders.

The Business Case for Trust

This year’s Trust Barometer leaves no doubt that there are tangible consequences for
businesses that gain—or lack—the trust of their stakeholders. Trust influences consumer
spending, corporate reputation, and a company’s ability to navigate the regulatory environment.

Trust hits the bottom line
For the first time, the Barometer mea-
sured the actions informed publics
take based on how much—or how
little—they trust a company. Over a
12-month period, 91% of 25-to-64-
year-olds said they had bought a
product or service from a company
they trusted, while 77% had refused
to buy a product or service from a dis-
trusted company (figure 21, page 19).
We also find that trust is connected
to a company’s license to operate.
Respondents inclined to trust busi-
ness in general are more supportive
of a company in its efforts to sell its
products or services; pursue changes
in local laws; or seek preferential
treatment for tax, employment or
environmental purposes than those
who don’t trust business.
Hard and soft assets on
equal footing
Among our global audience of 25-
to-64-year-olds, being able to trust
a company is one of the most
important factors in determining a
company’s reputation (figure 22,
page 19). It ranks just below the
quality of a company’s products
and its treatment of employees, on
par with a company’s financial
future, and more important than job
creation, giving back to the com-
munity, and innovation in products
and services. Transparency, defined
as frequent and honest communica-
tion about the business, also outranks
those attributes.

18 2009 EDELMAN TRUST BAROMETER

Figure 21: Through personal action, trust has tangible benefits Candid Communication
Thinking back over the past 12 months, have you taken any of the following
A QUESTION FOR...
actions in relation to companies that you trust? Have you taken any of the
following actions in relation to companies that you do not trust? Doug Schoen, an advisor
to U.S. President Bill Clinton
Personal actions taken with... from 1994 to 2000, and a
counselor to Edelman
A distrusted company A trusted company

77% 91%
Q: How should corporations
communicate their business
Refused to buy their products/services Chose to buy their products/services
and social objectives using
72% 76% their CEOs, executives, and
Criticized them to a friend or colleague Recommended them to a friend or colleague everyday employees?

55% A: The Edelman Trust Barometer

Paid a premium for their products/services compellingly suggests that
corporations from CEOs down
34% 42% must stay in close touch with
Shared negative company opinions/experiences online Shared positive company opinions/experiences online stakeholders, respond quickly
to questions, and get out any
17% 26%
changed circumstances or bad
Sold shares Bought shares news as it develops. Candor,
consistency, and interactivity
Informed publics ages 25 to 64 in 20 countries are the three words that
come to mind when asked
to summarize the implications
of this year’s study.

Figure 22: Communication and trust as important to reputation as value

for money
How important is each of the following factors to the overall reputation of a company?

Offers high quality products or services 94%

Is a company that treats its employees well 93%

Communicates frequently and honestly 91%

on the state of its business
Is a company I trust 91%
Gives value for money 91%

Stays within the spirit and the 90%

letter of the law in [country]
Has a strong financial future 90%
Has senior leadership that can be trusted 89%
Has a strong commitment to
protect the environment 87%
Is an innovator of new 87%
products, services, or ideas
Creates and keeps jobs in my area 86%
Commits time, money, and resources 85%
to the greater public good

Informed publics ages 25 to 64 in 20 countries

THE BUSINESS CASE FOR TRUST 19

 Public Engagement: The Road to Rebuilding Trust
If businesses are to regain trust, they will need to adopt a strategy of Public Engagement,
by means of a shift in policy and communications. The essence of Public Engagement is the
commitment of companies to say—and do as they say.
Organizations must be forthright and honest in their actions and communications. In a time of utter
distrust, business leaders must make the case for actions and then demonstrate their progress
against those goals. When problems arise within companies, stakeholders need to see senior
executives take a visible lead in acknowledging errors, correcting mistakes, and working with
employees to avoid similar problems going forward. This adherence to transparency is at the
core of each of the four pillars of Public Engagement:

Private Sector Diplomacy Mutual Social Responsibility

“I would like to talk about the big
issues facing our country and the role
that we can play as retailers. …To
those who say that now is not the
time for health care reform, for a new
energy policy, for higher quality schools,
for comprehensive immigration reform,
I say you are wrong.”
“Do special interests refuse to yield on
any part of their agenda, regardless of
the benefit to the common good? …Or
do we come together—government,
NGOs and business—in a new approach
to solving the big problems facing
our country?”
Business has both the opportunity
and the responsibility to become a
primary actor in developing solutions
to global problems. Companies must
move beyond the silo of their profes-
sional trade association to partner
with governments and NGOs. They
must address not only the issues
that have an impact on their bottom
line, but also the world’s most pressing
problems. This is an opportunity for
business to act as a private sector
diplomat, recommending appropriate
regulatory frameworks across borders.
If companies fail to take the initiative
to do so, they run the risk of having
policies thrust upon them.
Companies must realign their
business practices so that they
benefit society and the bottom line.
Companies must integrate into their
products and services approaches
to societal problems such as climate
change, health care, and energy
independence. Immediate stake-
holders like employees and customers
must be invited to participate in a
company’s social responsibility dec-
isions and actions—and the public
at large must be kept informed about
the progress the company is making
toward those goals.

Excerpts from remarks made

by H. Lee Scott, Jr., former
president and CEO, Wal-Mart
Stores, Inc.* to the National
Retail Federation
*An Edelman client.
In the United States, coffee roaster and
retailer Starbucks* invites customers to
partner as a force for good through
efforts like (STARBUCKS)RED™ and
My Starbucks Idea. The company’s “I’m in!”
program attracted 65,000 people on
Facebook who each pledged five hours
of their time to volunteering, a total of
1.3 million hours of community service.

20 2009 EDELMAN TRUST BAROMETER

 “Heavy equipment maker Caterpillar Inc.
announced in late December it would cut
executive pay in half, and many salaried
employees would see cuts of as much
as 15 percent.” —The Wall Street Journal

Shared Sacrifice
CEOs must demonstrate that they
too feel the burden of the recession.
At a time when workers are losing
jobs and investors are seeing stock
values plummet, voluntary executive
pay cuts and forfeiting of bonuses
send a powerful message that leaders
are in tune with the realities facing
employees. Leaders also must com-
municate with employees about the
problems confronting the company
and welcome their voices. This type
of transparency and collaborative
spirit will help engage them in finding
and embracing solutions.
Continuous Conversation
Sixty percent (60%) of our respondents inform, with a real commitment to
said they need to hear information speed, the conversations among the
about a company three to five times new influencers—always underway
before they believe it. The CEO should on blogs, in discussion forums, and
set forth the company’s position, but bulletin boards. Every company can
then it must be echoed by others— be a media company by creating
by individuals who often sit outside easily accessed, substantive on-
the company—including industry line content that can be improved by
experts, academics, and ordinary cit- the public.
izens. Companies will be well served
by moving from a mindset of control
to one of contribution. Mainstream
media continues to be an important
way to reach opinion formers, but it is
not the only one. Companies should

The JNJ BTW blog from Johnson & Johnson*

is among several initiatives the company has
launched to invite publics to share their views
on what the company is doing as well as
participate in the conversation about health.

*An Edelman client.

PUBLIC ENGAGEMENT: THE ROAD TO REBUILDING TRUST 21

 trust A decade of insights from the Edelman Trust Barometer

2001
2002
Rising influence of NGOs

Fall of the celebrity CEO

2003 Earned media more credible than advertising

2004 U.S. companies in Europe suffer trust discount

2005 Trust shifts from “authorities” to peers

2006 “A person like me” is most credible spokesperson

2007 Business more trusted than government and media

2008 Young influencers have more trust in business

2009 Business must partner with government to regain trust

© Edelman, 2009. All rights reserved.

22 2009 EDELMAN TRUST BAROMETER